767 Views

given - nominal value of share rs 10,no. of shares issued 10,000.Total net profit 20,000 and dividend paid 10% . what is earning per share


Prince Gupta 20th Aug, 2020
Answer (1)
Prabhav Sharma 20th Aug, 2020

Hello,

Value per share = 10 (Given)

Number of shares = 10000 (Given)

Dividend paid = 10 % (Given)

Net profit = 20000 (Given)

Now, we know that Dividend Paid = Value per share x number of shares x % Dividend paid

= 10 * 10000 * 0.1

= 10000

Now, earnings per share (EPS) = (Net profit - dividend) / number of shares

EPS = (20000 - 10000) / 10

Solving this, we get:

EPS = 1 (Answer)

Related Questions

MAHE Manipal M.Tech 2025
Apply
NAAC A++ Accredited | Accorded institution of Eminence by Govt. of India | NIRF Rank #4
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
Indrashil University | B.Tech...
Apply
Apply for B.Tech | AICTE Aproved | UGC Recognized | International Collaborations for Global Edge | 100% Placement Assistance
Manav Rachna-MBA Admissions 2025
Apply
41000+ Alumni network | Students from over 20 countries
Manav Rachna-B.Tech Admission...
Apply
NAAC A++ Grade | NBA Accredited B.Tech programs | 41000+ Alumni network | Students from over 20 countries
JSS University Noida MBA 2025
Apply
170+ Recruiters Including Samsung, Zomato, LG, Adobe and many more | Highest CTC 47 LPA
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books